ABN AMRO has announced two separate developments in its work on digital assets and post-trade automation, involving crypto custody regulation and the use of blockchain technology in derivatives processing. ABN AMBRO disclosed this information in a press release.
Hauck Aufhäuser Digital Custody (HADC), ABN AMRO’s German subsidiary, has received authorisation from BaFin under the EU’s Markets in Crypto-Assets Regulation (MiCAR). The licence allows HADC to provide crypto custody and transaction-related services to institutional clients within a single EU regulatory framework.
MiCAR entered into force on 30 December 2024 and introduces harmonised rules for crypto-asset services across the EU. With the licence, HADC is permitted to safeguard and manage crypto assets on behalf of clients. The bank states that these services can later be offered in other EU member states through passporting. According to ABN AMRO, HADC will continue to focus on institutional clients as it expands its activities.
Smart contracts
In a separate initiative, ABN AMRO has completed its first international over-the-counter derivatives transaction using a Smart Derivative Contract (SDC), working with DZ Bank. The transaction was live for ten days and relied on distributed ledger technology for automation of the trade lifecycle.
Settlement, valuation and collateral management were handled through the smart contract. Daily payments were processed automatically via SEPA and confirmed back to the blockchain-based system. Predefined market data and interest rate curves were used for valuation and collateral calculations.
According to the parties, the SDC structure is intended to address the operational complexity and cost typically associated with OTC derivatives, which are widely used by corporates and financial institutions for risk hedging. The contract model maps the full lifecycle of a derivative, including automated market data delivery and integrated valuation.
